Munoz Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks. Required a. October sales are estimated to be $400,000, of which 45 percent will be cash and 55 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget. b. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts. c. The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $13,900. Assume that all purchases are made on account. Prepare an inventory purchases budget. d. The company pays 80 percent of accounts payable in the month of purchase and the remaining 20 percent in the following month. Prepare a cash payments budget for inventory purchases. e. Budgeted selling and administrative expenses per month follow. -The capital expenditures budget indicates that Munoz will spend $180,600 on October 1 for store fixtures, which are expected to have a $39,000 salvage value and a two-year (24-month) useful life. Use this information to prepare a selling and administrative expenses budget f. Utilities and sales commissions are paid the month after they are incurred; all other expenses are paid in the month in which they are incurred. Prepare a cash payments budget for selling and administrative expenses g. Munoz borrows funds, in increments of $1,000, and repays them on the last day of the month. Repayments may be made in any amount available. The company also pays its vendors on the last day of the month. It pays interest of 2 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a $31,000 cash cushion. Prepare a cash budget. h. Prepare a pro forma income statement for the quarter i. Prepare a pro forma balance sheet at the end of the quarter J. Prepare a pro forma statement of cash flows for the quarter. nmount available. The company also pays its vendors on the last day of the month. It pays interest of 2 percent per month in cash on the last day of the month. To be prudent, the company desires to maintah a $31,000 cash cushion. Prepare a cash budget a. Prepare a pro forma income statement for the quarter. 1. Prepare a pro forma balance sheet at the end of the quartet. j. Prepare a pro forma statement of cash flows for the quarter. Complete this question by entering your answers in the tabs below. Octoher sales are estimated to be $100,000, of which 45 percent will be cash and 55 percent will bi credt. The compony expects sales to increase at the rote of 20 percent per month. Prepore a sales budget. he die 105t day of the monthe Reponents may be made in any on the last diay of the company also pays its vendors on the last day of the month. It pays interest of 2 percent per month in ensh h. Prepare a pro forma income st. To be prudent, the company desires to maintain a $31,000 cash cushion. Prepare a cish budget. H. Prepare a pro forma income statement for the quartet. 1. Prepare a pro forma balance sheet at the end of the quartet. 1. Prepare a pro forma statement of cash fows for the quartec. Cemplete this question by entering your answers in the tabs below. The company expects to collect 100 percent of the accounts roceivable genarated by credt soles in the month following the sale. Prepere a schedule of cath receipts. on the last day of the month. To be prudent, the company desises to of crie monin. in pays interest of 2 percerit per month in cash 2. Prepare a pro forma income statement for the quarter, L. Prepare a pro forma balance sheet at the end of the quarter, ]. Prepare a pro forma statement of cash flows for the quarter. Complete this questlon by entering your answers in the tabs below. The cost of goods sold is 70 peronnt af salis. The company desiret to maintain a minimum ending inveatory equal to 20 percent of the next month's cost of goods sold, However, ending invertocy of pecumber is expected to be iti,,00e, Nssume that all purchabes are made on account. Prepere an inventory purchasas budoet. amount ava lable. The company also pays its vendors on the last day of the month, it pays interest of 2 percent per month in cash on the last day of the month. To be prudent, the company desires to maintain a 531,000 cash cushion. Prepare a cash budget. 2. Prepare a pro forma income statement for the quarter. 1. Prepare a pro forma balance sheet at the end of the quarter. . Prepare a pro forma statement of cash flows for the quarter. Complete this question by entering your answers in the tabs below. The company pays 0 percent of accounts payeble in the month of purchase and the remaining 20 parcant in the following month. Prepare a cash payments budget for inventory purchases. (Round your final anwers to the neeremt whole dollar h. Prepare a pro forma income statement for the quarter. 1. Prepare a pro forma balance sheet at the end of the quarter. j. Prepare a pro forma statement of cash flows for the quarter. Complete this question by antering your answers in the tabs below. Prepare a selling and administrative expenses budget. 1. Prepare a pro torma statement of cash fows for the quarter. Complete this question by entering your answers in the tabs below. Utilies and sales commissions are paid the month after they are incurred; all other expanses are paid in the month in which: they are incurred. Prepare a cash peyments budget for seling and administrative expenses. Cormpiete this question by antering your answers in the tabs below. Munor borrows funds, in increments of 51,000 , and repnys them on the last day af the month. Repoyments may be made in any amount available. The company also pays its vendors on the lest day of the month. It pays interest of 2 perennt per month in cash on the last day of the month. To be prudent, the company direlres to maintain a $31,000 cash cushion. Prepare a cash budget. (Any repayments should be indicated with a minus sign.) Coreplete thin gueatton by antartab your answars in the tabs below. Propere a pro forma income statement for the quarter: Complete this question by entering your answers in the tabs below. Prepare a pro forma balance 5 heet at the end of the quarter. (Amounts to be deducted should be indicated by a minus sign Complete this question by entering your answers in the tabs below. Prepare a pro forma statement of cash flows for the quarter. (Cash mutflinue ehnibli han indinted with a minus sign.)